ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, announced today (July 27, 2009) that it has closed and received funding for a new four-year secured bank loan facility for £86.145 million (approx. 100 million) with Eurohypo AG, in line with the announcement made on July 23, 2009. Net proceeds from the loan will be used to reduce outstanding debt.
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The £86-million loan facility is secured on a portfolio of 15 prime UK distribution facilities.
The £86-million loan facility is secured on a portfolio of 15 prime UK distribution facilities and will mature in July 2013, with the potential to extend for a further year if certain criteria are met in July 2013. The key terms of the loan are a fixed rate of 5.93% p.a., an initial loan-to-value of 50% and no amortization of loan principal until maturity.
Peter Cassells, Chief Executive Officer, said: "We are pleased to have completed this secured financing with Eurohypo, a new lender for PEPR. This transaction demonstrates the attractiveness to lenders of the strong and stable cash flows generated by our portfolio of high-quality prime distribution facilities even in the current difficult market environment. It also emphasizes the ability we have to take advantage of our access to debt capital markets."
Source: M:Communications
